Polish MPC expects domestic demand to remain main growth driver in 2016

Poland’s rate council expects domestic demand to remain the main growth driver in 2016, with CPI gradually increasing to levels higher overall in 2016 vs 2015, the Monetary Policy Council said in its policy assumptions for 2016.

Following is a list of macroeconomic prospects for Poland in 2016, as described by the council:


– Domestic demand will remain the main driver of GDP growth in 2016. Stable growth of consumer demand seen in recent quarters is expected to continue in 2016, supported by an improving situation on the labor market and further wage growth;

– corporate investments growth should remain at high levels, supported by a good financial situation of firms, high capacity utilization and an expected increase in domestic and foreign demand, as well as low interest rates;

– public investments may weaken in 2016 due to the transitory period in EU funds absorption;

– public demand growth should be similar to 2015;

– the overall impact of fiscal policy on domestic macroeconomic conditions should be neutral in 2016;

– CPI levels should be gradually increasing and will be higher overall in 2016 compared to 2015.

krba/ mbn/

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